Foreign businesses to face fewer roadblocks

Beijing: China will further lower market access thresholds in areas such as the banking and securities industry and expand the early negative list for management to attract more foreign investments, the State Council said.

A notice on the issue was signed by Premier Li Keqiang and disclosed on Wednesday.

It aims to promote steady growth of foreign investment in China’s pursuit of having a more inviting business environment.

The document, which follows up a State Council executive meeting about the issue on July 28, said market access would be relaxed in areas including new energy vehicle manufacturing, ship design, aircraft maintenance, gas stations, artists booking agencies and insurance.

The country will govern foreign investments with a pre-entry national treatment and a negative list management system, which has been used in 11 pilot free-trade zones.

Negative lists for foreign investments will be promoted nationwide as soon as possible to enhance openness, transparency and norms of China’s business environment.

Negative lists refer to employing lists of only banned or restricted practices, simplifying procedures.

The document encourages foreign investment in China, with a new focus on western and northeastern China and supporting key infrastructure projects.

Multinational companies are also encouraged to set up headquarters in China.

Preferential tax policies will be carried out, including deferred taxes levied on eligible projects that are invested with profits obtained from foreign-invested companies.

No withholding income tax will be levied for these projects. Deferred taxes can reduce tax burdens so that companies can use the money elsewhere without interests payments.

Foreign talent is another key focus. More visas will be issued this year to foreign talent and more multiple-entry visas that last five to 10 years will be issued to eligible foreigners.

A standard work permit system will be introduced next year to attract foreign professionals. — China Daily/Asia News Network